Raytheon Technologies (RTX) is one of the largest aerospace and defense companies in the world. It has over 150,000 employees in 46 countries and has been around in various forms for over 100 years, observes Glenn Rogers, contributing editor to Internet Wealth Builder.
A few years ago, it merged with United Technologies and spun off the Otis and Carrier businesses, which left it with a large dominant aerospace and defense business. The company's portfolio includes the manufacture of airplane engines, avionics, guided missiles, air defense systems, satellites, and drones.
One of the company's best-known products is Stinger missiles, which are used extensively in Ukraine to great effect. In fact, Raytheon has just been awarded a US$624 million contract from the US Army to produce 1,300 Stinger missiles. Hundreds of these missiles have already been shipped to Ukraine and because of their proven effectiveness many other countries will be ordering them as well.
The company’s name brands include Collins Aerospace, Pratt & Whitney, Raytheon Intelligence and Space, and Raytheon Missiles and Defense. So even though a large portion of the business is focused on the defense industry, it is also very active in non-defense sectors like commercial aviation and space exploration.
Raytheon recently reported first quarter 2022 results. Sales were $15.7 billion (figures in US dollars), up 3% from the prior year. Organic growth was ahead 4%. Adjusted earnings per share were up 28% versus the prior year. The company generated free cash flow over of $37 million.
The company repurchased $743 million worth of shares in the quarter and intends to buy back at least $2.5 billion this year. The stock pays a quarterly dividend of $0.55 a share ($2.20 a year) to yield 2.3% at the current price. The payout has been raised for three consecutive years.
Raytheon reaffirmed its outlook for the rest of the year. The company projects $68 billion in sales with adjusted earnings per share of $4.80. The stock pulled back slightly during the recent downturn and is currently about 6% below its recent high of $106.02. I intend to buy some more shares myself and if you do not already have a position, I would recommend adding it to your portfolio.
